Wang Ye said Finance News: Inflation , this problem has begun to become a "stumbling block" for US economic growth! According to the specific data of
, just last week, according to the latest data released by U.S. Department of Commerce , in September, the US core personal consumption expenditure price index (PCE) increased by 3.6% year-on-year, the same as last month, and continued to stand above the 30-year high.
In addition, data also showed that in September, US PCE increased by 4.4% year-on-year and 0.3% month-on-month.
In other words, U.S. inflation is still high and remains above a 30-year high.
If you want to stimulate US economic growth, inflation is undoubtedly the key to solving the problem. So how should the United States solve the inflation problem?
Just recently, the US Treasury Secretary - Yellen (Janet Yellen) gave an "answer": reduce tariffs with China! #The US Treasury Secretary suddenly made a statement on the tariff issue#
On Monday (1st), according to Reuters , Yellen said that in general, tariffs often push up domestic prices, and due to the increase in the cost of raw materials such as steel and aluminum, tariffs will also lead to higher costs for consumers and enterprises. On the contrary, reducing tariffs will bring about the effect of "disinflation".
It is worth mentioning that the prince said that finance noticed that just last week, the United States and EU officially announced an agreement, namely: the United States cancels the tariff on imported steel and aluminum in Europe, and the European Union also cancels the surcharge of US import goods.
In response to this, the United States said that this will help alleviate the cost pressure faced by some manufacturers.
However, like other U.S. officials, Yellen still insists that the current surge in U.S. prices is the result of supply chain bottlenecks and rising energy prices, and also said that U.S. inflation questions should ease in the second half of 2022.
When asked whether adjusting the tariffs on Chinese goods may help alleviate the pressure on inflation ?
Yellen said that overall this is the case, but the United States is also waiting for China to fulfill its commitment in the (Phase I) trade agreement that came into effect in February 2020: to increase purchases of $200 billion in U.S. goods and services.
Yellen said: "Our (US) trade representative has said that we will consider further reducing tariffs. Of course, we also hope to see China fulfill their commitments in the first phase of the economic and trade agreement."
Finally, the US Treasury Secretary also said that if (US) prices can be stabilized and perhaps (China and the United States) eventually lowered some tariffs in a reciprocal way, it may be an ideal result. What do you think of
? What do you think will be next for the United States? Will some tariffs be cancelled or reduced?
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